McDonald’s temporarily closes US offices, plans layoffs: Reports

Burger chain McDonald’s Corp, will temporarily shut down its US offices this week, according to various reports.  The company aims to inform corporate employees about the layoffs that will occur as part of a broader company restructuring.

According to the reports, McDonald’s asked some of its foreign and US workers to work from home on Monday through Wednesday in an internal email issued last week. The reason for the remote work arrangement was to facilitate the delivery of staffing decisions virtually. The report does not provide information on the number of employees who will be laid off.

A message from McDonald’s stated that the Chicago-based company would be communicating “key decisions related to roles and staffing levels across the organisation” during the week of April 3.

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The reports also stated that McDonald’s instructed its staff to postpone any face-to-face meetings with third parties, including vendors, at the company’s headquarters.

During an interview, McDonald’s Chief Executive Chris Kempczinski stated that he anticipated saving money through the workforce assessment, although he did not have a specific dollar amount or number of jobs in mind for the cuts. Kempczinski explained that certain existing jobs might either be relocated or phased out.

As part of an updated business plan, the fast-food company in January, declared that it will be reconsidering its corporate employment levels. This review could result in layoffs in some areas, while other areas could experience expansion.

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In its message, McDonald’s recognised that the week of April 3 would be a busy time for personal travel, and therefore decided to deliver the staffing news remotely. The company advised employees who would not have access to a computer during the  week to provide their personal contact information to their manager.

As worries about a sluggish economy persist, companies from various sectors are reducing their head counts. Layoffs that began in the tech industry last year have now expanded to include retailers and manufacturers. In the past month, Amazon.com Inc. has announced the elimination of 9,000 additional jobs, in addition to the previously announced layoffs.

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